WGU D076 Finance Skills for Managers Actual Questions with Correct Answers 2024 Update

WGU D076 Finance Skills for Managers Actual Questions with Correct Answers 2024 Update Accounting The system of recording, reporting, and summarizing past financial information and transactions. Accounts Receivable Turnover (AR Turnover) An activity ratio found by credit sales divided by accounts receivable. Activity Ratios A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm's operational efficiency and profitability. Additional Funds Needed (AFN) Another name for the discretionary financing needed or external financing needed. It represents the additional financing needed given a firm's expectations for future growth. Affirmative Covenants A bond covenant that describes things the company pledges itself to do in order to protect bondholders. Agency Costs Costs that are incurred when management does not act in the best interest of shareholders. Agency Problem When the agent (the management) does not act in the best interest of the principle (the owners). Aggressive Assets Companies or securities with beta greater than 1. Annual Percentage Rate The annual interest rate that is charged for borrowing money or that is earned through investment. Annuity Due A series of equal payments made at the beginning of consecutive periods. Annuity A stream of cash flows of an equal amount paid every consecutive period. Asset Pricing The process of valuing assets.